How cryptocurrency exchange works

The working of the cryptocurrency exchange mostly depends on whether or not an intermediary needs to be involved in a financial transaction. Where an intermediary isn’t involved, the exchange can be decentralized which allows the buyer and seller to exchange cryptocurrency directly. These types of exchanges are limited to only exchanging cryptocurrency, not fiat. When an intermediary is involved, the exchange adopts the fiat exchange approach which allows the exchange of cryptocurrency to and from physical government printed currency. The intermediary, normally a cryptocurrency exchange company, mediates between the seller and buyer and profits from the exchange by collecting some fees.